S479 F09 Quiz 6

S479 F09 Quiz 6 - f 1 MM f 1 2 The number of losses for...

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Stat 479 Fall 2009 Quiz 6 October 22, 2009 1. Claims are distributed as an exponential distribution with θ = 4000. You want to create a discrete distribution with a span of 1000. R f 1 = the probability assigned to the span from 500 to 1500 using the Method of Rounding. MM f 1 = the probability assigned to the span from 500 to 1500 using the Method of Mean Matching. Calculate 10,000( R
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Unformatted text preview: f 1- MM f 1 ) . 2. The number of losses for health insurance is distributed as a Negative Binomial with a mean of 6. The amount of each individual loss is follows a Weibull distribution with τ = 2 and θ = 500. An insurance policy covering health insurance has an ordinary deductible such that the expected number of claims is 5. Calculate the amount of the deductible....
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This note was uploaded on 03/15/2012 for the course STAT 479 taught by Professor Na during the Spring '10 term at Purdue.

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S479 F09 Quiz 6 - f 1 MM f 1 2 The number of losses for...

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